Breakingviews: Taking Freddie out

May 8 - The U.S. housing finance agency continues gushing cash – making it ever more difficult for Uncle Sam to contemplate shutting Freddie down.

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Okay so Freddie Mac got a lot harder to put out of its misery today it reported results once again. Lots of numbers coming into this federal housing agency just like its cousin Fannie Mae. That all of us out there have been trying to find a way to fix the US housing. Finance market are now perplexed because this thinks just chugging out cash app which makes a really hard to take it out grow about shooting. Right examine this is part of the problem and essentially. He went went Freddie Mac and Fannie mayor profitable those profits go to the US treasury right so. All of a sudden they're like turn into the housing market is improving their making lots of money this is making it this couldn't make it much more than -- and different -- -- -- foot and -- billion and a profit. Finally the other weakness. Hopefully I hear and that doesn't like Seve yet so you know -- big deficit to stay in the United States this is not the biggest millennium and let them do it's nice to have it -- how much so okay. This is going to be uses an argument by some people -- say it's either bailout just like the bailout of the banks. What it was worth the return we -- won't mean and money back and believe me I think treasure hi this is the one that has been very ugly in terms of the ballots in the -- are gonna wanna say okay it's been successful. Don't have stayed put into it just suits sort of so -- -- about a hundred native -- and it snowed offered an -- and Friday. But what they have a what we're saying as of Friday announced -- today that they have this tax credit thirty billing and right now. The reason that they are not realizing this gains because -- haven't been profitable if it becomes apparent that there profitable. Enterprise are gonna realize this pain and that goes back to traders right. This is a bit like since her to get -- -- -- -- that Xperia for you when you go to Canada money's going to be you gonna be problem but they are gonna do that -- -- activity properly with certain period of time to get it back. And it's it it sounds Nichols is complete column because if it in his if you just think about it console you taking money from the treasury might be the tax that you would pay T. Payback attacked the treasury so it's completely ridiculous. -- -- a whole circle around in my -- are also on assignment that make it policy argument to make it hey it's their ups and downs this but having these housing organizations. Allows us to smooth out the housing market and you know give people thirty year. Fixed mortgages and can step which -- -- -- greater public good or right around it but again and that this is the problem because that Fannie and Freddie even though they were taken it right the government. They're not on anybody's books -- this is kind of a giant. Find out what they are about agency in terms of accountability right this is not something that we want him to continue but I think it's gonna get harder and harder -- searching his revenue source right coming in its treasury to actually do anything about it just makes the status quo. A lot more. Contractually what happened so that's in just to conclude here. You know in the next in the administration the next three and a half years whenever the president one of the ideas we got out there was that he's got to tackle the housing finance reform yeah. I don't know this happens this is gonna happen a lot. This is that I would say it's not gonna happen is we stuck it stuck. -- -- -- about that. I'd rather talk about that will be for a separate off camera discussions we've gotten more breaking news tomorrow.